What company had a major financial scandal in 2001?

The Enron scandal, revealed in October 2001, was a major scandal, which eventually led to the bankruptcy of the Enron Corporation.

This energy corporation was based in Houston. Formed in 1985, by the moment of its bankruptcy it had become one of the world's major companies of a kind. As the result of a great criminal scandal, Enron underwent the biggest bankruptcy reorganization ever in the history of the USA. It's also considered the largest American audit failure of all time. The investors of the corporation had lost more than 70 billion dollars, and they returned only a very small amount of that money.

More Info: en.wikipedia.org

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60 Comments

Stevie G

I remember it well as I worked for the company. It took 5 years before the top two guys Kenneth Lay, founder, chairman and CEO and Jeffrey Skilling, former president, and COO were found guilty. Skilling was convicted of 19 of 28 counts of securities fraud and wire fraud and acquitted on the remaining nine, including charges of insider trading. He was sentenced to 24 years and 4 months in prison. Lay was convicted of all six counts of securities and wire fraud for which he had been tried, and he was subject to a maximum total sentence of 45 years in prison, Amazingly Ken Lay died, of a heart attack, the day before being sentenced. The case of Lay's wife, Linda, was a strange one. She sold roughly 500,000 of Enron shares ten to thirty minutes before the information that Enron was collapsing went public on November 28, 2001. Linda was never charged with any of the events related to Enron and kept all the money. Enron had put millions into the successful election campaign of George W. Bush who was still president throughout the Enron bankrupcy, the charging of Lay and Skilling and the timely heart attack of Ken Lay.

Bill Coe

You should have posted the question because your information was WAY more informative than the author (not that th eauthor did a bad job, you just did better),

George Oliver Prince

Comments like Steve Grant's help fill in the blanks. That's one thing I really like about this site

Mary Prentice

Very interesting. Thank you.

Jane Riordan Williams

I wonder if Ken Lay really dies. No body. Instant creamation.

Angela Watts

THANKS Stevie G for all the great information. I'm sure it was a difficult time for you since you. worked THERE. Sorry for what you had to go through, I know it would stress me out!

Player

Stevie G, dude thank you. Their explanation didnt give any details.

ava hacker

I have no clue on any business related stuff i was surprised that i got it right

amanda

Seeing as how I live in Houston....I would have to have lived under a rock to not know that one. I know it was a real shocker back then

Pacmom

Sean Philips, ouch, Sean....why the insults?

robert karel

Germaine Ferrao Lenn, Agreed!

Sean Philips

Julie Eddy, it was headline news worldwide Julie. Don’t blame Australia for your own ignorance.

Diana Ramirez

True Catherine Smith,

Jim Morefield

Stevie G, Was it really a heart attach???? With all that money who knows???? Skillings brother Tom is the number 1 weather man on WGN TV/Radio in Chicago.